Thursday, July 2, 2009

With the passing of H.R.2454 (a.k.a. Waxman-Markley or the American Clean Energy And Security - ACES - Act of 2009) and the subsequent ongoing debate in the Senate, I thought I'd jot a few thoughts.

On Climate Change:- As I stated here, my view on anthropogenic climate change boils down to: if it is real, it is inevitable- "My fear is that a solution that is effective, equitable, and enforceable is simply beyond the global community's technical and political ability."- All economically viable fossil fuels will be used by someone, and the carbon will most likely end up in the atmosphere- It may already be too late to reverse what has occurred- This is not to say nothing should be done, but should shade our response to becoming adaptable to the uncertain effects that it could cause- Crippling our economy does not seem prudent

On Cap and Trade:- Cap and Trade, as a theory, is my preferred method of reducing greenhouse gas (GHG) emissions- Preferable to a straight CO2 tax- Creating a market for negative externalities is a great way to account for their effects- Should drive innovation- However, there is something subliminally disconcerting about agreeing to limit the emission of a main component of my very breath

On H.R.2454:- Seems to do little to actually lower GHG- Environmentalists don't even seem to like it- Reducing American GHG does not necessarily equal a reduction of Global GHG- A non-Global agreement will only shift CO2 production to other locations- Moves a lot of money around- Different industries have different allowances- Heavily influenced by political shenanigans- Job creation does not necessarily equal economic growth- Increased energy costs will be crippling to our economy- Proponents should be upfront about costs- To reduce atmospheric CO2 levels to "acceptable levels" will require an unprecedented reduction in standard of living- How will compliance be verified?- What type of costs and economic inefficiencies will verification schemes add?